Banks will face higher capital requirements under the newest round of stress tests. They will first have to seek capital on their own, then from their national banks, and only after they've exhausted both these measures will they be able to access EFSF funds.

This would probably bar fragile banks in core European countries like France from EFSF funds, placing more stress on the French government — and thus France's credit rating.

- This SPIV will probably take weeks to create, according to Reuters columnist Paul Taylor. Further, it essentially amounts to the rest of the world bailing out Europe, particularly if private investors aren't so keen on buying sovereign bonds. It would also likely require the IMF to boost its resources.

- However, an IMF backstop to the eurozone as a whole is an attractive proposition, as it implies that the fund will do what is necessary to support a euro rescue. The IMF can act more quickly than the EU and with much less fanfare.

New reforms from Italy

Everyone's waiting for new reforms from PM Silvio Berlusconi and his government, but they're dithering over new austerity and growth programs. At the same time, Berlusconi's coalition looks increasingly fragile, making reforms harder to push through the legislature.

With everyone talking about treaty changes, however, it is unlikely that we'll see tangible changes to EU governance anytime soon. In addition to the opposition any changes would face from non-euro EU countries, approval of any treaty amendments would take time — time that EU leaders don't seem to have right now.